2014 Report details for project: Submarine Enterprise Performance Programme

Project name: Submarine Enterprise Performance Programme - there are 3 reports for this project: 2013, 2014, 2015
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Organisation: MOD (D17) - see all reports for this organisation
Report year: 2014 (data is from Sept 2013)
Category: Transformation - see all reports for this category
Description: SEPP is a business transformation programme in which the three monopsomy tier 1 suppliers within the Submarine Enterprise (BAE Systems, Babcock and Rolls-Royce) work together collaboratively with the MOD. The scope of SEPP covers the Submarine Enterprise, including the design, build and in-service support of submarines; it does not cover the Strategic Weapons programme, including the Atomic Weapons Establishment (AWE). SEPP has three strategic objectives: Performance Up, Working with industry to improve performance on new and existing submarines and strengthen the linkage between customer requirements and Operating Centre outputs; Cost Out, Realising significant savings through the rationalisation of facilities, adopting an holistic approach to design, build and support and exploiting buying power; and Sustainability In, Protecting the UK’s ability to retain and sustain the capability to design, build and support nuclear submarines as identified in the Defence Industrial Strategy and to meet the commitment to build a successor for Vanguard class submarines.
DCA (RAG): Amber
DCA text: The main focus has been on identification and realisation of benefits and the achievement of the delivery of the Foundation Contracts (FC). These embed the commitment from industry to their benefit targets. The Rolls-Royce FC was signed in February 2013 and the BAES FC was signed in July 2013. The Babcock Marine FC will be delivered through a Terms of Business Agreement (TOBA) and Maritime Support Delivery Framework (MSDF) . The recent introduction of a non-financial benefit realisation process through the re-issue of the Benefits Realisation Plan is also helping to increase confidence in the programme’s ability to deliver enduring benefits.
Start date: 2010-05-31
End date: 2014-03-31
Schedule text: The programme is on track with benefit identification and benefit delivery underway in both financial and non-financial benefits. Identification of enduring benefits has now commenced. The signing of the Rolls-Royce and BAES foundation contracts have been achieved (February 2013 and July 2013 respectively), with the remaining foundation contract with Babcock (the MSDF) due in Spring 2014. The programme is still on track to transition to business as usual following signature of MSDF.
Baseline: £4.48m
Forecast: £0.30m
Variance: -93.30%
Variance text: The cost variance in 13/14 is attributable to a decrease in technical support for cost modelling and preparation of foundation contracts following signature of the BAES and Rolls-Royce contracts and support for MSDF being provided by another delivery team.
Whole Life Cost: £12.42m
WLCost text: The following are included in the WLC for SEPP: · Supporting the preparation and signing of the 3 Foundation Contracts; · Insurance; · Support contracts.
Notes1:
Notes2:
Sourcefile: IPA_2014.csv

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